Artex can assist a range of interested parties from large Private Equity Houses and multinational insurance operations through to Managing General Agents (MGAs) and other intermediaries in the European Union (EU) to leverage the full benefit of prospective insurance portfolios or niche insurance products that have been built or developed, either by establishing their own insurance company or through the use of a Protected Cell Company (PCC). We have more than 20 years of experience in Europe working in partnership with clients on the design, set-up, licensing and management of insurance companies.
Establishing Your Own Company
We help prospective insurers establish their own venture with the establishment of their own insurance company within the EU. Under the EU Life and Non-Life 1st to 3rd Insurance Directives, a licensed EU insurance company is authorized to underwrite life or general insurance business directly into the EU and European Economic Area (EEA) States. Artex is able to assist prospective insurers to establish an insurance company under either “the freedom to provide services,” i.e., to provide business services on a cross-border basis; or “the freedom of right of establishment,” namely, to provide business services through a permanent presence in another EEA-member state.
We have the ability to offer two EU jurisdictions – Gibraltar and Malta – with a staff that possesses the knowledge, experience and proven performance in the European market. We understand European regulations and requirements – a critical aspect when forming an insurance company.
Target Business: Size & Necessary Criteria:
- A minimum size of £5 million to 10 million
- All classes of business
- Solvency II legislation
- Control and oversight from the host state
Setting Up a Cell Facility
Artex can also help intermediaries, brokers and MGAs grow their revenue on profitable accounts of business and exert greater control over underwriting capacity with the use of a Malta-domiciled PCC. This is an attractive entry into direct underwriting, offering MGAs and other insurance producers the opportunity to establish a cell within an existing facility and benefit from low set-up costs and capital requirements. A PCC allows insurance products to be directly underwritten while providing the ability to gain control over rating, policy coverage and claims. A Malta PCC is authorized under the EU Life and Non-Life 1st to 3rd Insurance Directives to underwrite life or general insurance business directly to the EU and EEA States.
Artex’s expertise in the creation of underwriting structures and our Maltese operation enable us to effectively guide our clients through the entire project to form a PCC cell insurer.
Target Business: Size & Necessary Criteria:
- Intermediaries, brokers, MGAs and other insurance producers with profitable business accounts
- Gross Written Premium of £1 million-plus
- Suitable for all classes of insurance business, particularly lines with low claims volatility (excluding motor)
- Insurance producers with strong control over all front-end functions including marketing, policy issuance, premium collection, etc.
Features & Benefits of Forming a European Insurance Company or PCC
- Control over areas of strategic management, future growth and expansion
- Increased revenue through underwriting profits
- Greater freedom than traditional offshore location due to status within EU
- Potential to reduce net effective tax rate to that of more traditional member states due to tax regime
- Capitalize on UK and European connections with easy access to the UK and much of Europe
- Comparatively low-cost EU jurisdictions
- Positive approach to insurance industry regulation
- Access to a modern and educated infrastructure
Artex works side by side with our clients, providing them with all that is required in establishing a European insurance company or PCC – from feasibility studies to the licensing application process and managing the company for a smooth and successful operation.
Shape Today Tomorrow
Redefine the way risk is managed with Artex. We help clients worldwide achieve greater focus on where their challenges lie and how the complexity of these challenges can be better served with creative, collaborative solutions that are aligned to their unique business strategies and goals and translate into transformative value. Contact us to learn more about how our best-in-class solutions and capabilities can maximize a client’s business outcomes.Contact Us >